Saturday Star

How rising fuel prices are squeezing South African workers' budgets

Anita Nkonki|Published

Abigail Moyo, spokesperson for the trade union UASA, has warned that the latest fuel price adjustments will place additional pressure on workers already stretched by year-end expenses.

“Illuminating paraffin (wholesale) will increase by 74c per litre, and LP gas in Gauteng will increase by 24c per kg. LP gas prices will vary by magisterial district zone,” Moyo said.

She added that the increases come at the worst possible time for many families.

“This throws a spanner in the works for workers who, after the November fuel savings, had already budgeted for their December and January expenses, including travel to spend time with family and loved ones.”

Moyo urged South Africans to prepare for a tighter start to 2026.

“UASA urges its members and South Africans in general to tighten their belts to accommodate the higher prices, while keeping in mind the upcoming costs of school fees and uniforms in early January.”

The warning follows the announcement by the Minister of Mineral and Petroleum Resources, Gwede Mantashe, who confirmed that fuel prices will be adjusted from 3 December 2025, reflecting both local and international market conditions.

South Africa’s fuel prices are reviewed monthly and are influenced by several factors.

According to the department, international factors include the cost of imported crude oil and refined petroleum products, which are priced globally and include shipping and other importation expenses.

The key drivers behind the latest adjustments include:

• Crude oil price fluctuations

• International petroleum product price changes

• Rand/US dollar exchange rate movements

• Implementation of the Slate Levy

• Adjustments to industry margins

• Annual updates to LPG price structure elements

• The Maximum Refinery Gate Price (MRGP) for LPG imported through the Port of Saldanha Bay

Consumers who rely on paraffin and LP gas, especially low-income households, are expected to feel the immediate impact as energy costs rise heading into the festive season.

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